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This article first appeared in City & Country, The Edge Malaysia Weekly on February 4, 2019 - February 10, 2019

Sunway Bhd has set a sales target of RM1.3 billion for its financial year ending Dec 31, 2019 (FY2019), from proposed projects with a total gross development value (GDV) of RM2 billion. This was revealed at a media briefing held in Kuala Lumpur on Jan 24.

According to Sunway property division managing director Sarena Cheah, the target is based on the group’s better-than-expected sales performance in the previous financial year (FY2018), where it achieved sales worth RM1.8 billion.

“We exceeded our 2018 sales target of RM1.3 billion and we closed the year with RM1.8 billion, mainly from Sunway GEOLake Residences and the first block of the first phase of Sunway Velocity TWO in the Klang Valley; Rivercove Residences EC in Singapore; Citrine Lakehomes @ Sunway Iskandar in Johor; as well as Sunway Garden in Tianjin, China. All these five projects achieved very good sales, averaging 85% to 90%,” said Cheah.

“FY2018 was a relatively good year for us … we delivered about 1,500 units valued at RM3.4 billion.”

As overseas projects contributed close to 40% to overall sales in FY2018, Sunway will continue to look at other mature countries, such as Australia and the UK, Cheah added.

Sunway already has a team in the UK exploring opportunities for property development there, she revealed. The developer has also been expanding into Singapore aggressively. Following two land acquisitions there last year, it recently announced another purchase in Tampines.

“This year, we are looking to launch RM2 billion worth of projects, with overseas developments accounting for half of the total GDV. Locally, we plan launches for the central region (worth RM630 million), the southern region (RM260 million) and the northern region (RM130 million). There will be only one overseas project — the RM1 billion Brookvale Park in Clementi, Singapore,” said Cheah.

 

Malaysian launches

The launches for the central region include the second block of the first phase of Sunway Velocity TWO (GDV: RM300 million), a high-rise development in Wangsa Maju called Sunway Avila (GDV: RM230 million) and townhouses in Sunway GEOLake Residences in Sunway South Quay (GDV: RM100 million).

In the southern region, there will be townhouses and Phase Three of Sunway Citrine Lakehomes in Sunway Iskandar (GDV: RM100 million) as well landed residential units in Sunway Lenang Heights (GDV: RM160 million).

In the northern region, the developer will launch the first-of-its-kind hot spring serviced suites called Sunway Onsen Suites (GDV: RM130 million).

Sunway also launched its nationwide Super 5* easy homeownership scheme, seeing the uncertainties in the property market. The scheme allows purchasers to pay RM5,000 to own a unit and the remaining downpayment on a flexi instalment plan. The group will offer eligible buyers 95% guaranteed financing with a special interest rate during the campaign period until June 30.

It will also absorb the stamp duty for the transfer of ownership of properties priced above RM1 million. The campaign will also provide aspiring homeowners a free financial health check.

Sunway currently has unbilled sales of RM2.1 billion while its landbank — some 54% of which is in Johor, 25% in the Klang Valley, 6% in Penang, 1% in Singapore and the rest in different locations — stands at 3,289 acres and has a total GDV of RM56.8 billion.

Cheah noted that Sunway’s completed unsold units have a GDV of RM400 million to RM500 million and are mainly residences in Johor.

“We are putting a lot of effort in investment properties there to drive traffic to the township. We need to differentiate the township from others with our offerings, and we provide all kinds of property there,” she said.

Property investments currently under construction in Sunway Iskandar are the expansion of Sunway International School, Big Box Retail, Big Box Office and Big Box Hotel, worth a total of RM445 million. As the township’s pioneering mall, Sunway Citrine Hub has a net lettable area of 71,000 sq ft and is 100% occupied with tenants such as Jaya Grocer, Starbucks, Mr DIY, 7-Eleven, Awesome Brew and Morganfield’s.

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